For the past week, this stock achieved a high of Rs. 365.20 and a low of Rs. 319. The prevailing market capitalization of the company is Rs. 2,485.20 crore.
Savita Oil Technologies is making waves in the market, currently trading at Rs 359.65, marking a substantial uptick of 26.30 points or 7.89% from its previous closing figure of Rs 333.35 on the BSE.
Listed in the ‘B’ group on the BSE with a face value of Rs. 2, the stock hit a 52-week high at Rs. 365.20 today. Conversely, its 52-week low was recorded at Rs. 231.95 on the 28th of March 2023.
For the past week, this stock achieved a high of Rs. 365.20 and a low of Rs. 319.00. The prevailing market capitalization of the company is Rs. 2,485.20 crore.
Recent announcement
Excitingly, Savita Oil Technologies has successfully inaugurated a state-of-the-art Synthetic Ester manufacturing plant situated in Mahad. This versatile facility is meticulously designed for the production of Synthetic Esters catering to Transformer Fluid applications. Furthermore, it possesses the capability to manufacture Synthetic Esters to meet the stringent demands of high-performance Automotive and Industrial Lubricants. Synthetic Esters are now the preferred choice for a range of applications including Electric Vehicle (EV) Coolants, Immersion Cooling for batteries, and Data Centre Cooling Fluids.
With the successful commissioning of this plant, the company now proudly stands as the world’s first enterprise capable of producing and marketing all three classes of Transformer Fluids – Mineral Oil Based, Natural Ester Based, and Synthetic Ester Based. Leveraging these advanced Esters, Savita Oil Technologies is poised to introduce a novel line of EV Coolants and Immersion Cooling Fluids to meet the ever-evolving market demands.
What is Synthetic Ester
Synthetic esters are special kinds of chemicals often used in things like lubricants and high-performance fluids. They are made by mixing certain types of acids and alcohols. What’s interesting is that by choosing different acids and alcohols, you can create synthetic esters with specific properties.
For example, you can make some that work really well at high temperatures, and others that are good at low temperatures. Some synthetic esters are excellent at resisting wear and tear, making them perfect for things like engines or machines.
They are used in the electric vehicle (EV) industry to make things work smoothly. These esters are like special oils that help parts in an EV, like the motor and batteries, run well. They can handle high temperatures and are good at keeping things cool, which is important for electric vehicles. So, in simple terms, synthetic esters are like a kind of oil that helps electric cars run efficiently and stay cool, making them a key ingredient for EV technology.
About the company.
In 1961, Nandkishore Mehra, together with his father Devichand Mehra, laid the foundation for Savita. They began with trading thinners and solvents but soon established their first manufacturing unit in Sakinaka, Mumbai, crafting liquid paraffin and petroleum jelly.
Over the years, Savita expanded its manufacturing capabilities, setting up units in Turbhe, Mahad, and Silvassa, specializing in petroleum products and polymers. In 1994, the company went public, listing on the Bombay Stock Exchange and the National Stock Exchange of India. Savita’s journey includes milestones like ISO certification, renewable energy ventures, and global exports.
In 2009, the company rebranded as Savita Oil Technologies Limited, showcasing its commitment to innovation and progress.
In terms of ownership, the promoters hold a commanding 71.92% stake, while institutions and non-institutions are in possession of 9.57% and 18.51%, respectively.
Financials:
- The company’s Q1 FY24 financial performance indicates steady growth, with an overall revenue of Rs. 937 crores, a 4% YoY increase.
- Savita Oil Technologies reported EBITDA and PAT of Rs. 136 crores and Rs. 86 crores, respectively, for Q1 FY24, reflecting growth of 15.1% and 10% YoY.
- EBITDA per KL/MT stood at Rs. 6,724 for Q1 FY24.
Source- SOTL Investor presentation
SOTL’s product portfolio
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Transformer Oils: Savita Oil Technologies is the exclusive global producer of transformer oils, offering mineral, natural, and synthetic ester-based variants. These are supplied to end-users, including Transformer Manufacturers, Electricity Boards, and Power Plant Operators.
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White & Mineral Oils: The company ranks among the top two providers of White & Mineral Oils in India, a testament to its market presence and quality offerings.
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Formulated & Specialty Products: As a leading supplier in India, Savita Oil Technologies offers a diverse range of wax emulsions. These emulsions serve to protect coatings and ink surfaces in various applications, catering to a wide spectrum of industries.
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Automotive Oils (B2C and B2B): Recognized for its high-quality lubricant manufacturing, the company operates state-of-the-art production facilities and a cutting-edge technology centre. It has earned a reputation as a preferred supplier to automotive and industrial Original Equipment Manufacturers (OEMs) across a wide array of lubricant applications. The company’s clientele spans two-wheelers, four-wheelers, Commercial Vehicles, Farm Equipment, and Industrial Machines and equipment.
Management Commentary
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The company’s power sector-focused transformer oil division saw steady growth in the domestic markets along with positive signs that its overseas business development efforts are now materialising.
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The finished lubricants business also experienced growth, however, the quarter saw some pressures as slowing demand in the USA and China resulted in excess availability of feedstocks in the Indian market.
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Despite these challenges, the management is confident in the company’s ability to preserve the current business momentum by enhancing the product mix and boosting operational efficiencies. The company continues to invest in value-added products, which should make a significant contribution going forward.
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The company’s new Synthetic Ester Fluid plant, which is expected to be commissioned in August 2023, and expansion of the industrial lubricants network will be instrumental for the next phase of business growth.
In conclusion, Savita Oil Technologies’ recent achievement in the synthetic ester domain, coupled with its rich history of innovation, positions the company as a trailblazer in the petroleum speciality industry. As the EV sector and the broader energy landscape evolve, Savita’s dedication to cutting-edge solutions and sustainable practices paves the way for continued success and growth.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.